BETHESDA, MARYLAND--(Marketwired - Jun 2, 2014) - Snipp Interactive Inc. ("Snipp"), an international provider of mobile marketing solutions listed on the TSX Venture Exchange (TSX VENTURE:SPN), is pleased to announce its financial results for the quarter ended March 31, 2014. A copy of the complete unaudited financial statements, management's discussion and analysis are available on SEDAR (www.sedar.com).
The total sales revenues for Q1 2014 grew 100% from Q1 2013.
Revenue for the first quarter of 2014 was $349,082 compared to $174,331 for the first quarter of 2013 and $262,551 for the previous quarter (Q4 2013). The increase in revenue is largely attributable to a slew of new customers and campaigns launched utilizing Snipp's collection of mobile-based promotion marketing solutions (including SnippCheck, its unique receipt-processing solution and SnippWin, its contests and promotions platform).
Net income for Q1 2014 was $208,694 compared to net income of $135,163 in Q1 2013.
The company reported a net loss before other non-operating items of $186,305 for Q1 2014 compared to a net loss before other non-operating items of $398,235 in Q1 2013. The decrease in net loss (before other non-operating items) was mainly due to increased sales revenue as a result of the continued acquisition of new clients and expanded use of the company's mobile solutions by its existing clients, aided by a focused paring down of operational expenses. The company believes it has the infrastructure in place to allow its revenues to scale without incurring significant additional infrastructure costs and is focused on continuing to increase revenue while maintaining a similar operating cost structure. Where opportunities arise, the company intends to re-invest revenues in rapidly growing its business in North America to further capture market share, increase awareness of the company and target specific acquisitions that would add to its portfolio of solutions in the promotion marketing space.
At the end of Q1 2014, current assets were $950,116 and current liabilities $367,200.
Q1 2014 Highlights include:
- Launch of multiple campaigns with new clients in the Healthcare, Alcohol Beverages, Sports Marketing, Food Products and Fashion industries
- Further penetration into member agencies within the Omnicom group (the second largest agency holding company in the world by revenue)
- New relationships with two agencies within the WPP group of companies (the largest advertising company in the world by revenue)
- Multiple articles featuring Snipp in industry-leading journals and trade publications
- 200% record quarterly revenue growth and increased cost reductions
Atul Sabharwal, CEO and Founder of Snipp commented, "We are very pleased to announce our ninth consecutive quarter of revenue growth. We have built a solid foundation across every part of the organization and are well poised for continued and sustained growth. In the past few months we have successfully launched multiple national campaigns for category-defining brands and in association with national grocery chains, other big box retailers and even a major sports league."
"We have a solid pipeline of new business and high-profile campaigns," he continued. "In fact just today we launched five new national campaigns for a diverse set of brands. For confidentiality reasons and the highly competitive nature of the work we do, we are not at liberty to talk about our clients and their campaigns, but we encourage everyone to check our website frequently to learn about how we are continuing to build our relationships with Fortune 500 brands and leading global marketing agencies."
The information in this section is forward-looking and should be read in conjunction with the section below entitled "CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS".
Management is focused on achieving cash-based profitability in 2014 after sustaining nine consecutive quarters of growth since the public offering and believes it is well on track to do so. In fact, in the first five months of 2014, the Company has already booked the equivalent of 110+% of its 2013 audited revenues.
Management believes that the company can maintain its record of continued quarterly growth with the prudent reinvestment of its cash flows to support the growth. Management also believes that with the continued development of the platform and its components, the company is in a strong position to further penetrate the promotions marketing industry not only in the United States of America but also globally. Management believes the best strategy for the company is to continue focusing on the promotions marketing industry, estimated to be an $80 billion in North America alone, and which remains relatively under-penetrated with regards to mobile solutions.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright Snipp Interactive Inc. All rights reserved. All other trademarks and trade names are the property of their respective owners.